What does rate year mean in medical liability terms?
When starting a new practice for the first time, when you have an ‘occurrence’ policy in prior years, or you purchase tail coverage from your previous policy, your claims made policy will be written at a first year rate (which is about 25% of a fully developed or “mature” rate). Each succeeding year, your premium will increase until the fourth year of coverage, at which time the premium is fully developed (mature).
